Who's doing what this week in the South African M&A space?


Who's doing what this week in the South African M&A space?


Published Date: 2021-03-05 | Source: DealMakers | Author: Marylou Greig

Who's doing what this week in the South African M&A space?

Exchange Listed Companies

  • Brikor has acquired a 40% stake in local fleet company Zingaro which operates specialised vehicles providing turnkey services for mine activities. Brikor will pay R50 million for its stake with 193 million Brikor shares issued at R0.15 per share as part payment. The deal is a category two transaction and as such does not require shareholders' approval.
  • Alaris through its wholly-owned subsidiary Alaris Investment Holdings UK, has entered into an agreement with a consortium of sellers to acquire Linwave technology for a purchase consideration of £3 million and the issue of 1,823,145 Alaris shares. Linwave, based in the UK, is a supplier of novel custom RF & Microwave products across multiple markets from defence, avionics, marine and wireless, to industrial and healthcare.
  • Value Group, has proposed a scheme of arrangement to shareholders, other than those strategic shareholders holding a 76.05% stake, to acquire the shares at R6.75 per share representing a 49.7% premium to the 30-day volume weighted average price on the date preceding the cautionary announcement of February 16, 2021. The illiquidity in the share and the lack of institutional interest as a result, in addition to the high costs associated with being a listed entity and a participant in the regulated markets environment are reasons for the offer.
  • RDI REIT has reached an agreement on the terms of a recommended cash offer to be made by Bidco for the entire issued, and to be issued, share capital of the company excluding those shares owned by Starwood Funds representing a 29.59% stake in RDI REIT. Under the terms of the acquisition, each RDI REIT shareholder will be entitled to receive 121.35 pence in cash for a total consideration of £329,45 million for the remaining stake.
  • Tradehold through its 74.3% subsidiary Colling Property Projects, has concluded an agreement with Supernova Baumärkte, to acquire a portfolio of 6 retail warehouse properties in Austria. The consideration payable in respect of the acquisition is €16,6 million.
  • Old Mutual private equity fund manager African Infrastructure Investment Managers (AIIM), together with the management team of the new Onix Data Centres platform, have acquired a majority stake in Ngoya Etix DC (Ghana), a carrier-neutral data centre with a current capacity of 170 racks. The investment was via AIIM's pan-African infrastructure fund AIIF3. The acquisition marks the fund's second investment in the digital infrastructure sphere during the last four months.
  • Sirius Real Estate has completed the acquisition of a German mixed-use business park in Fellbach, near Stuttgart for a total acquisition cost of €9,2 million, reflecting an EPRA net initial yield of 6%.
  • Calgro M3, through its subsidiary Calgro M3 Developments, has reached an agreement with Proptec Residential and Lonny Enterprise Trading, whereby the company will dispose of MS5 Pennyville and a loan claim of R10,5 million it has against PZR Pennyville Zamamphilo Relocation for R49,27 million. The disposal is in line with Calgro M3's decision to focus on fewer Provinces and projects.
  • Bidvest, has disclosed, in its interim results, that the company has disposed of 100% of the share capital and voting rights of Ontime Automotive, a European specialist vehicle transport services and car delivery operator. The disposal completed the divestiture of the Group's Freight interests in the UK which were considered non-core.
  • W G Wearne and Consolidated Infrastructure Group have advised shareholders that the sale of the Muldersdrift Quarry Business to Drift Supersand Mining announced in December 2019 has now been terminated. Although the conditions precedent for the sale of business agreement were fulfilled and the transaction completed in January 2020, the conditions precedent in respect of the sale of properties have not been fulfilled and as a result the suspensive conditions of the sale of Mining Right Agreement have also not been fulfilled.
  • Grand Parade Investment, wholly-owned subsidiary GPI Properties has announced that the agreement with Aragon Property Development signed in June 2020 for the sale of 33 Heerengracht Street, in Cape Town has lapsed. GPI will continue to negotiate with potential buyers of the property.

Unlisted Companies

  • ENGIE, a French multinational electric utility company, has reached an agreement to acquire a 40% stake in Xina Solar One and a 46% interest in the Operations & Maintenance Company from Abengoa. The plant, which is equipped with parabolic trough technology and a molten salt storage system, is located in the Northern Cape.
  • Petredec, the liquefied petroleum gas trading and shipping company based in Singapore, has acquired Quest Petroleum, a fuels distributor and retailer in the Eastern Cape. This is Petredec's third acquisition in SA's fluid fuels and gas sector in the past 18 months.
  • Quench a local fintech solution startup offering retailers access to an online market platform with distribution and customer engagement capabilities, has received an undisclosed investment from Imvelo Ventures, which will be used to grow brand awareness and expand current partnerships.
  • Mavtech, the local tyre pressure, automation and driveline control specialist, has acquired Capricorn Trading Alliance and Custom Parts Solutions, both former suppliers of the company. The acquisitions secure Mavtech's supply chain.
  • Stitch, a local fintech startup offering API access to bank accounts in Africa with lightweight single Sign-On experience, has secured US$4 million in a seed round. Investors include firstminute capital, The Raba Partnership, CRE, Village Global and Norrsken among others. Stitch will use the funding to build the team, consolidate growth in SA and launch operations in West and East Africa.
  • Inoxico, a South African tech company using trade credit analytics to help companies grow with their business customers, has received an undisclosed investment from the Vumela Fund, established by FNB Business and Edge Growth. The investment will be used to scale operations to enable the company to establish itself as a recognised commercial credit risk technology provider.

DealMakers is SA's M&A publication.

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